Economic Valuation of River Conservation towards International Tourists’ Preferences and Willingness to Pay for Ecofriendly Services of Hotel Industry: A Case Study of Namxong River in Vangvieng District, Laos
ABSTRACT
Using choice experiment, the objective of this study is to estimate international tourists’ preferences and willingness to pay for ecofriendly services which related to river and natural environment conservation of hotel industry in Vangvieng, a popular tourist town in Lao PDR. We used the mixed logit to take into account of preference heterogeneity by allowing coefficients to be normally distributed and assumed to vary among individuals. The result shows that all ecofriendly practices offered in this study are significantly preferred by tourists. Income, age, and education did not have significant effect on the probability of choosing ecologically friendly practices of hotel and attributes to support the ecotourism of the area; however, this study provides important information that female tourists are more receptive to a new alternative. These findings do not only support the provision of good and green services in Vangvieng Town, but will also be useful for policy maker to enhance the sustainability of ecotourism in Laos.
Using choice experiment, the objective of this study is to estimate international tourists’ preferences and willingness to pay for ecofriendly services which related to river and natural environment conservation of hotel industry in Vangvieng, a popular tourist town in Lao PDR. We used the mixed logit to take into account of preference heterogeneity by allowing coefficients to be normally distributed and assumed to vary among individuals. The result shows that all ecofriendly practices offered in this study are significantly preferred by tourists. Income, age, and education did not have significant effect on the probability of choosing ecologically friendly practices of hotel and attributes to support the ecotourism of the area; however, this study provides important information that female tourists are more receptive to a new alternative. These findings do not only support the provision of good and green services in Vangvieng Town, but will also be useful for policy maker to enhance the sustainability of ecotourism in Laos.
KEYWORDS
Choice Experiment, Ecofriendly Service, Ecotourism, Hotel Industry, International Tourist, River
Choice Experiment, Ecofriendly Service, Ecotourism, Hotel Industry, International Tourist, River
Cite this paper
Khamsay, P. , Takahashi, Y. , Nomura, H. and Yabe, M. (2015) Economic Valuation of River Conservation towards International Tourists’ Preferences and Willingness to Pay for Ecofriendly Services of Hotel Industry: A Case Study of Namxong River in Vangvieng District, Laos. Journal of Water Resource and Protection, 7, 897-908. doi: 10.4236/jwarp.2015.712074.
Khamsay, P. , Takahashi, Y. , Nomura, H. and Yabe, M. (2015) Economic Valuation of River Conservation towards International Tourists’ Preferences and Willingness to Pay for Ecofriendly Services of Hotel Industry: A Case Study of Namxong River in Vangvieng District, Laos. Journal of Water Resource and Protection, 7, 897-908. doi: 10.4236/jwarp.2015.712074.
References
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http://doi.org/10.1007/s10661-006-9274-x [2] Pinto, U. and Maheshwari, B.L. (2011) River Health Assessment in Peri-Urban Landscapes: An Application of Multivariate Analysis to Identify the Key Variables. Water Research, 45, 3915-3924.
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http://dx.doi.org/10.1177/1938965511409031 [12] Svensson, P., Rodwell, L.D. and Attrill, M.J. (2012) Hotel Managed Marine Reserves: A Willingness to Pay Survey. Ocean and Coastal Management, 51, 854-861.
http://dx.doi.org/10.1016/j.ocecoaman.2008.08.001 [13] Kostakis, I. and Sardianou, E. (2012) Which Factors Affect the Willingness of Tourists to Pay for Renewable Energy? Renewable Energy, 38, 169-172.
http://dx.doi.org/10.1016/j.renene.2011.07.022 [14] Kang, K.H., Stein, L., Heo, C.Y. and Lee, S. (2012) Consumers’ Willingness to Pay for Green Initiatives of the Hotel Industry. International Journal of Hospitality Management, 31, 564-572.
http://dx.doi.org/10.1016/j.ijhm.2011.08.001 [15] Zander, K.K. and Straton, A. (2010) An Economic Assessment of the Value of Tropical River Ecosystem Services: Heterogeneous Preferences among Aboriginal and Non-Aboriginal Australians. Ecological Economics, 69, 2417-2426.
http://dx.doi.org/10.1016/j.ecolecon.2010.07.010 [16] Brox, J.A., Kumar, R.C. and Stollery, K.R. (1996) Willingness to Pay for Water Quality and Supply Enhancements in the Grand River Watershed. Canadian Water Resources Journal, 21, 275-288.
http://dx.doi.org/10.4296/cwrj2103275 [17] Ilija, M., Mayer, A.S. and Solomon, B.D. (2007) Economic Valuation of Environmental Services Sustained by Water Flows in the Yaqui River Delta. Ecological Economics, 65, 155-166. [18] Hanley, N., Wright, R.E. and Alvarez-farizo, B. (2006) Estimating the Economic Value of Improvements in River Ecology Using Choice Experiments: An Application to the Water Framework Directive. Journal of Environmental Management, 78, 183-193.
http://dx.doi.org/10.1016/j.jenvman.2005.05.001 [19] Loomis, J., Kent, P., Strange, L., Fausch, K. and Covich, A. (2000) Measuring the Total Economic Value of Restoring Ecosystem Services in an Impaired River Basin: Results from a Contingent Valuation Survey. Ecological Economics, 33, 103-117.
http://dx.doi.org/10.1016/S0921-8009(99)00131-7 [20] Dachary-bernard, J. and Rivaud, A. (2013) Ocean and Coastal Management Assessing Tourists’ Preferences for Coastal Land Use Management: Oyster Farming and Heritage. Ocean and Coastal Management, 84, 86-96.
http://dx.doi.org/10.1016/j.ocecoaman.2013.07.011 [21] Chaminuka, P., Groeneveld, R.A., Selomane, A.O. and Van Ierland, E.C. (2012) Tourist Preferences for Ecotourism in Rural Communities Adjacent to Kruger National Park: A Choice Experiment Approach. Tourism Management, 33, 168-176.
http://dx.doi.org/10.1016/j.tourman.2011.02.016 [22] Wang, P. and Jia, J. (2012) Ocean and Coastal Management Tourists’ Willingness to Pay for Biodiversity Conservation and Environment Protection, Dalai Lake Protected Area: Implications for Entrance Fee and Sustainable Management. Ocean and Coastal Management, 62, 24-33.
http://dx.doi.org/10.1016/j.ocecoaman.2012.03.001 [23] Petrosillo, I., Zurlini, G., Corlian, M.E., Zaccarelli, N. and Dadamo, M. (2007) Tourist Perception of Recreational Environment and Management in a Marine Protected Area. Landscape and Urban Planning, 79, 29-37.
http://dx.doi.org/10.1016/j.landurbplan.2006.02.017 [24] Pearce, D., Ozdemiroglu, E., Bateman, I., Carson, R.T., Day, B., Hanemann, M., et al. (2002) Economic Valuation with Stated Preference Techniques. [25] Adamowicz, W., Boxall, P., Williams, M. and Louviere, J. (1998) Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation. American Journal of Agricultural Economics, 80, 64-75.
http://dx.doi.org/10.2307/3180269 [26] Mitchell, R. and Carson, R. (1989) Using Surveys to Value Public Goods: The Contingent Valuation Method. Resources for the Future. [27] Hausman, J. and McFadden, D. (1984) Specification Tests for the Multinomial Logit Model. Econometrica, 52, 1219-1240.
http://dx.doi.org/10.2307/1910997 [28] Train, K.E. (2003) Discrete Choice Methods with Simulation.
http://dx.doi.org/10.1017/cbo9780511753930 [29] Hensher, D.A., Rose, J.M. and Greene, W.H. (2005) Applied Choice Analysis: A Primer. [30] Alexander, S. and Kennedy, C. (2002) Green Hotels: Opportunities and Resources for Success Written by Green Hotels. [31] Deyà, B. and Tirado, D. (2011) Hotel Water Consumption at a Seasonal Mass Tourist Destination. The Case of the Island of Mallorca. Journal of Environmental Management, 92, 2568-2579.
http://dx.doi.org/10.1016/j.jenvman.2011.05.024 [32] Zander, K.K. and Garnett, S.T. (2011) The Economic Value of Environmental Services on Indigenous-Held Lands in Australia. PLoS ONE, 6, e23154.
http://dx.doi.org/10.1371/journal.pone.0023154 [33] Andreopoulos, D., Damigos, D., Comiti, F. and Fischer, C. (2014) Estimating the Non-Market Benefits of Climate Change Adaptation of River Ecosystem Services: A Choice Experiment Application in the Aoos Basin, Greece. Environmental Science and Policy, 45, 92-103.
http://dx.doi.org/10.1016/j.envsci.2014.10.003 [34] Bliem, M., Getzner, M. and Rodiga-laβnig, P. (2012) Temporal Stability of Individual Preferences for River Restoration in Austria Using a Choice Experiment. Journal of Environmental Management, 103, 65-73.
http://dx.doi.org/10.1016/j.jenvman.2012.02.029 [35] Albaladejo-Pina, I.P. and Díaz-Delfa, M.T. (2009) Tourist Preferences for Rural House Stays: Evidence from Discrete Choice Modelling in Spain. Tourism Management, 30, 805-811.
http://dx.doi.org/10.1016/j.tourman.2009.01.001 [36] Hasler, B., Lundhede, T., Martinsen, L., Neye, S. and Schou, J.S. (2005) Valuation of Groundwater Protection versus Water Treatment in Denmark by Choice Experiments and Contingent Valuation.
http://www2.dmu.dk/1_viden/2_Publikationer/3_fagrapporter/rapporter/FR543.PDF [37] Juutinen, A., Mitani, Y., Mäntymaa, E., Shoji, Y., Siikamäki, P. and Svento, R. (2011) Combining Ecological and Recreational Aspects in National Park Management: A Choice Experiment Application. Ecological Economics, 70, 1231-1239.
http://dx.doi.org/10.1016/j.ecolecon.2011.02.006 [38] Revelt, D. and Train, K. (1998) Mixed Logit with Repeated Choices: Households’ Choices of Appliance Efficiency Level. [39] Birol, E., Karousakis, K. and Koundouri, P. (2006) Using a Choice Experiment to Account for Preference Heterogeneity in Wetland Attributes: The Case of Cheimaditida Wetland in Greece. Ecological Economics, 60, 145-156.
http://dx.doi.org/10.1016/j.ecolecon.2006.06.002 [40] Hanley, N., Wright, R.E. and Koop, G. (2002) Modelling Recreation Demand Using Choice Experiments: Climbing in Scotland. Environmental and Resource Economics, 22, 449-466.
http://doi.org/10.1023/A:1016077425039 [41] Lourenço-Gomes, L., Pinto, L.M.C. and Rebelo, J.F. (2014) Visitors’ Preferences for Preserving the Attributes of a World Heritage Site. Journal of Cultural Heritage, 15, 64-67.
http://dx.doi.org/10.1016/j.culher.2013.01.003 [42] Hanemann, W.M. (1984) Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses. American Journal of Agricultural Economics, 66, 332-341.
http://dx.doi.org/10.2307/1240800
[1] Kamp, U., Binder, W. and Hölzl, K. (2007) River Habitat Monitoring and Assessment in Germany. Environmental Monitoring and Assessment, 127, 209-226.
http://doi.org/10.1007/s10661-006-9274-x [2] Pinto, U. and Maheshwari, B.L. (2011) River Health Assessment in Peri-Urban Landscapes: An Application of Multivariate Analysis to Identify the Key Variables. Water Research, 45, 3915-3924.
http://doi.org/10.1016/j.watres.2011.04.044 [3] Green Discovery (2014) Ecotourism Laos.
http://www.ecotourismlaos.com/activities/act_river.htm [4] Department of Tourism Development (2013) Statistic Report on Tourism in Laos. The Ministry of Information, Culture and Tourism, Lao. PDR. [5] Sosamphanh, B. (2011) Management of Tourism Activities in Vangvieng, Lao PDR, 249-256. [6] Vangvieng Tourism Office, Statistics Report on Tourism in 2013. [7] Water Resources and Environment Administration (2008) Stragic Framework for National Sustainable Development Strategy for Lao PDR. [8] Mekong River Commission (2010) An Assessment of Environmental Impacts of Tourism in the Lower Mekong Basin. MRC Technical Paper, No. 28. [9] Rogers, P. (2009) Tourism in Vangvieng Strategy for Staying Longer—Spending More. (August). [10] Environmentally Friendly Hotels (2014)
http://www.environmentallyfriendlyhotels.com/ [11] Millar, M. and Baloglu, S. (2011) Hotel Guests’ Preferences for Green Guest Room Attributes. Cornell Hospitality Quarterly, 52, 302-311.
http://dx.doi.org/10.1177/1938965511409031 [12] Svensson, P., Rodwell, L.D. and Attrill, M.J. (2012) Hotel Managed Marine Reserves: A Willingness to Pay Survey. Ocean and Coastal Management, 51, 854-861.
http://dx.doi.org/10.1016/j.ocecoaman.2008.08.001 [13] Kostakis, I. and Sardianou, E. (2012) Which Factors Affect the Willingness of Tourists to Pay for Renewable Energy? Renewable Energy, 38, 169-172.
http://dx.doi.org/10.1016/j.renene.2011.07.022 [14] Kang, K.H., Stein, L., Heo, C.Y. and Lee, S. (2012) Consumers’ Willingness to Pay for Green Initiatives of the Hotel Industry. International Journal of Hospitality Management, 31, 564-572.
http://dx.doi.org/10.1016/j.ijhm.2011.08.001 [15] Zander, K.K. and Straton, A. (2010) An Economic Assessment of the Value of Tropical River Ecosystem Services: Heterogeneous Preferences among Aboriginal and Non-Aboriginal Australians. Ecological Economics, 69, 2417-2426.
http://dx.doi.org/10.1016/j.ecolecon.2010.07.010 [16] Brox, J.A., Kumar, R.C. and Stollery, K.R. (1996) Willingness to Pay for Water Quality and Supply Enhancements in the Grand River Watershed. Canadian Water Resources Journal, 21, 275-288.
http://dx.doi.org/10.4296/cwrj2103275 [17] Ilija, M., Mayer, A.S. and Solomon, B.D. (2007) Economic Valuation of Environmental Services Sustained by Water Flows in the Yaqui River Delta. Ecological Economics, 65, 155-166. [18] Hanley, N., Wright, R.E. and Alvarez-farizo, B. (2006) Estimating the Economic Value of Improvements in River Ecology Using Choice Experiments: An Application to the Water Framework Directive. Journal of Environmental Management, 78, 183-193.
http://dx.doi.org/10.1016/j.jenvman.2005.05.001 [19] Loomis, J., Kent, P., Strange, L., Fausch, K. and Covich, A. (2000) Measuring the Total Economic Value of Restoring Ecosystem Services in an Impaired River Basin: Results from a Contingent Valuation Survey. Ecological Economics, 33, 103-117.
http://dx.doi.org/10.1016/S0921-8009(99)00131-7 [20] Dachary-bernard, J. and Rivaud, A. (2013) Ocean and Coastal Management Assessing Tourists’ Preferences for Coastal Land Use Management: Oyster Farming and Heritage. Ocean and Coastal Management, 84, 86-96.
http://dx.doi.org/10.1016/j.ocecoaman.2013.07.011 [21] Chaminuka, P., Groeneveld, R.A., Selomane, A.O. and Van Ierland, E.C. (2012) Tourist Preferences for Ecotourism in Rural Communities Adjacent to Kruger National Park: A Choice Experiment Approach. Tourism Management, 33, 168-176.
http://dx.doi.org/10.1016/j.tourman.2011.02.016 [22] Wang, P. and Jia, J. (2012) Ocean and Coastal Management Tourists’ Willingness to Pay for Biodiversity Conservation and Environment Protection, Dalai Lake Protected Area: Implications for Entrance Fee and Sustainable Management. Ocean and Coastal Management, 62, 24-33.
http://dx.doi.org/10.1016/j.ocecoaman.2012.03.001 [23] Petrosillo, I., Zurlini, G., Corlian, M.E., Zaccarelli, N. and Dadamo, M. (2007) Tourist Perception of Recreational Environment and Management in a Marine Protected Area. Landscape and Urban Planning, 79, 29-37.
http://dx.doi.org/10.1016/j.landurbplan.2006.02.017 [24] Pearce, D., Ozdemiroglu, E., Bateman, I., Carson, R.T., Day, B., Hanemann, M., et al. (2002) Economic Valuation with Stated Preference Techniques. [25] Adamowicz, W., Boxall, P., Williams, M. and Louviere, J. (1998) Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation. American Journal of Agricultural Economics, 80, 64-75.
http://dx.doi.org/10.2307/3180269 [26] Mitchell, R. and Carson, R. (1989) Using Surveys to Value Public Goods: The Contingent Valuation Method. Resources for the Future. [27] Hausman, J. and McFadden, D. (1984) Specification Tests for the Multinomial Logit Model. Econometrica, 52, 1219-1240.
http://dx.doi.org/10.2307/1910997 [28] Train, K.E. (2003) Discrete Choice Methods with Simulation.
http://dx.doi.org/10.1017/cbo9780511753930 [29] Hensher, D.A., Rose, J.M. and Greene, W.H. (2005) Applied Choice Analysis: A Primer. [30] Alexander, S. and Kennedy, C. (2002) Green Hotels: Opportunities and Resources for Success Written by Green Hotels. [31] Deyà, B. and Tirado, D. (2011) Hotel Water Consumption at a Seasonal Mass Tourist Destination. The Case of the Island of Mallorca. Journal of Environmental Management, 92, 2568-2579.
http://dx.doi.org/10.1016/j.jenvman.2011.05.024 [32] Zander, K.K. and Garnett, S.T. (2011) The Economic Value of Environmental Services on Indigenous-Held Lands in Australia. PLoS ONE, 6, e23154.
http://dx.doi.org/10.1371/journal.pone.0023154 [33] Andreopoulos, D., Damigos, D., Comiti, F. and Fischer, C. (2014) Estimating the Non-Market Benefits of Climate Change Adaptation of River Ecosystem Services: A Choice Experiment Application in the Aoos Basin, Greece. Environmental Science and Policy, 45, 92-103.
http://dx.doi.org/10.1016/j.envsci.2014.10.003 [34] Bliem, M., Getzner, M. and Rodiga-laβnig, P. (2012) Temporal Stability of Individual Preferences for River Restoration in Austria Using a Choice Experiment. Journal of Environmental Management, 103, 65-73.
http://dx.doi.org/10.1016/j.jenvman.2012.02.029 [35] Albaladejo-Pina, I.P. and Díaz-Delfa, M.T. (2009) Tourist Preferences for Rural House Stays: Evidence from Discrete Choice Modelling in Spain. Tourism Management, 30, 805-811.
http://dx.doi.org/10.1016/j.tourman.2009.01.001 [36] Hasler, B., Lundhede, T., Martinsen, L., Neye, S. and Schou, J.S. (2005) Valuation of Groundwater Protection versus Water Treatment in Denmark by Choice Experiments and Contingent Valuation.
http://www2.dmu.dk/1_viden/2_Publikationer/3_fagrapporter/rapporter/FR543.PDF [37] Juutinen, A., Mitani, Y., Mäntymaa, E., Shoji, Y., Siikamäki, P. and Svento, R. (2011) Combining Ecological and Recreational Aspects in National Park Management: A Choice Experiment Application. Ecological Economics, 70, 1231-1239.
http://dx.doi.org/10.1016/j.ecolecon.2011.02.006 [38] Revelt, D. and Train, K. (1998) Mixed Logit with Repeated Choices: Households’ Choices of Appliance Efficiency Level. [39] Birol, E., Karousakis, K. and Koundouri, P. (2006) Using a Choice Experiment to Account for Preference Heterogeneity in Wetland Attributes: The Case of Cheimaditida Wetland in Greece. Ecological Economics, 60, 145-156.
http://dx.doi.org/10.1016/j.ecolecon.2006.06.002 [40] Hanley, N., Wright, R.E. and Koop, G. (2002) Modelling Recreation Demand Using Choice Experiments: Climbing in Scotland. Environmental and Resource Economics, 22, 449-466.
http://doi.org/10.1023/A:1016077425039 [41] Lourenço-Gomes, L., Pinto, L.M.C. and Rebelo, J.F. (2014) Visitors’ Preferences for Preserving the Attributes of a World Heritage Site. Journal of Cultural Heritage, 15, 64-67.
http://dx.doi.org/10.1016/j.culher.2013.01.003 [42] Hanemann, W.M. (1984) Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses. American Journal of Agricultural Economics, 66, 332-341.
http://dx.doi.org/10.2307/1240800